AML and correspondent banking

Anti-money laundering (AML) is an important tool in the fight against financial crime. It’s also an area that brings major challenges, particularly for correspondent banks.

The processes involved in identifying illicit transactions are time-consuming, inefficient and often based on outdated technology. Many of the AML monitoring systems used by correspondent banks were originally developed for retail banking, so are not equipped to deal with the complexity of correspondent banking.

Billions have been spent by industry participants on various AML initiatives, but it’s clear that more information needs to be shared between governments and financial institutions if AML measures are to succeed in tackling financial crime.